Dogecoin, XRP, and Bitcoin show MDIA trends hinting at potential bull market recovery.
After a turbulent correction, the cryptocurrency market has found some calm, with prices stabilizing. Meanwhile, the Mean Dollar Invested Age is quietly pointing to heightened network activity, often seen as a precursor to extended bullish trends.
Despite a market-wide retracement this week, the Mean Dollar Invested Age (MDIA) – an often-overlooked crypto metric – signals potential bullish momentum across key assets.
Bitcoin’s MDIA has dropped 31% over the past 60 weeks, currently standing at 439 days. XRP’s MDIA has decreased by 22% in just 14 weeks, now at 865 days. Meanwhile, Dogecoin shows the sharpest decline, with its MDIA falling 31% to 370 days over the past eight weeks. This downward trend in MDIA highlights increasing activity from dormant wallets, particularly those of large stakeholders, as older coins re-enter circulation.
Historically, this trend has preceded sustained bull markets, with similar patterns observed before the 2017 and 2021 rallies. While short-term price fluctuations are inevitable, this metric lends confidence to mid and long-term bullish outlooks for the crypto market.
“Dormant coins are still moving aggressively, validating long-term bull market is still active.. especially for Bitcoin, XRP, and Dogecoin.”
What’s Next For Bitcoin and Dogecoin?
The MDIA figures follow a period of significant turbulence for Bitcoin, marked by billions of dollars in liquidations. The retail selling spree during this period, however, coincided with aggressive institutional buying, especially by the US investors, which signaled a bullish sentiment despite the crypto trading below the coveted $100,000 mark.
Meanwhile, Dogecoin is trading near $0.42 after a 4% surge over the past day. Experts suggest that the OG meme coin could finally kick off an uptrend following the latest pullback.
Prominent crypto analyst Ali Martinez, for one, has shared an optimistic outlook on Dogecoin’s bull cycle, suggesting it is still in its early stages. He said that the base target remains at $3 and a more ambitious projection of $18 if market conditions become extraordinarily bullish.
What’s Going to Drive XRP?
According to Arthur Azizov, CEO of B2BINPAY, getting final approval from the New York State Department of Financial Services to launch RLUSD is a game-changer. This could potentially attract even greater investor interest in XRP. In a conversation with CryptoPotato, the exec said,
“Already, RLUSD is being viewed as a potential competitor to USDT and USDC. If, as planned, RLUSD is issued on the XRP Ledger, it could provide an additional boost to XRP’s growth. Ripple’s distributed ledger technology is increasingly being recognized by banks and financial institutions, driving new partnerships and a growing demand for its solutions. Given Ripple’s trajectory and the potential of XRP, I anticipate that XRP could trade within the range of $5 to $7 during the first half of 2025.”
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